Dan, Home Buyer in 92647

Equity sale and standard sale

Asked by Dan, 92647 Wed Jul 6, 2011

Good morning Alls,
The property was bought from foreclosure and listed as equity sale by investment group. What are different between standard sale and equity sale?Do the sellers have to disclose anything in the disclosure form? Please let me know. Thank you

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Answers

15
Richard Littlefield’s answer
Because the owner has not lived in the property, they are not as liable if there is something wrong with the property. Inspect it well, You should have a good agent to advise you. I am not longer selling real estate but did so in HB for years. Contact me through Trulia if you would like a referal.
0 votes Thank Flag Link Thu Nov 10, 2011
Hi Dan,

An equity sale is simply a sale where the seller has equity....standard, flipper, probate, relocation, can all be equity sales. Sounds like you are talking about a flipper, or investor sale. They can give you a disclosure which states that they have never lived in the home and are not making disclosures....but they do have an obligation to disclose what they do know about. But by stating they have not lived in the home, they are letting you know they do not have back knowledge of items a normal seller would.

Karen
0 votes Thank Flag Link Fri Jul 8, 2011
Hi Dan,

The short sale property you offered on almost a year ago, did it NOT go through?

If this particular property was purchased at an auction & now it's on the market the only thing the listing may just reflect that it's a "FLIP" property. You can search the MLS just like I do at my web link below, let me know if you need any help.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes Thank Flag Link Wed Jul 6, 2011
Just know that most Equity sales will be sold As Is since this investment property has not been lived in by the new owner, it is in fact a buy and resale with no intention by the owner to live in it! Its a Flip!
0 votes Thank Flag Link Wed Jul 6, 2011
Hi Dan, it looks like all of our fellow OC agents jumped on it with good answers... Hope you find the information helpful...

Justin Palmer
Coldwell Banker, Beachside
(714) 213-8877
ClickJustin@aol.com
0 votes Thank Flag Link Wed Jul 6, 2011
Hello Dan,
Great question. A standard sale and an equity sale are actually the same thing. The meaning of an equity sale is that the homeowner has equity in the home, so it's not a short sale or foreclosure. You will see the term equity sale more and more because it can be desirable to buyers to see that the seller has equity. As for disclosures, the sellers are supposed to disclose as much as they know about the property. Of course a qualified home inspection is important in a real estate transaction too!
If you have any other questions please feel free to contact me on my cell/text or website - have a great day!
Holly Schwartz
714-928-4682
0 votes Thank Flag Link Wed Jul 6, 2011
Hi Dan,

Equity sale and standard sale are exactly the same--just 2 different words for the same thing. Sellers always have to disclose what they know, but if the sellers are an investment group and have never lived in the property, they don't really know anything about the property so they can't really disclose anything about the property. They do have to disclose natural hazards and information about lead paint, smoke detectors and water heaters.The key thing for anyone buying a property like this is to have a really good professional home inspection done.

Hope this helps and good luck!
Roz Essner, Realtor
RE/MAX Select One
0 votes Thank Flag Link Wed Jul 6, 2011
Hi, Dan

Standard and Equity sales are the same thing - there is now equity in the property. The investors bought the property below market value and therefore have equity in this home. As far as any disclosures - the standard disclosures that sellers have to provide to buyers won't be included since these sellers never lived in the home, they are unaware of any conditions prior to their purchasing the home.

I advise every buyer to get a 3rd party professional physical inspection, regardless of type of sale. As your agent, I would include the Termite Report, Natural Hazard Report and a clean Title Report to be supplied by the seller. Make sure that you are satisfied with the condition of the propery at time of purchase and that you like the neighborhood and surrounding areas too. I work with a lot of investors and the buyers of these homes after purchase from auction, so am very aware of what to ask for, what will not be included in the sale and what to look for

Let me know if I can help you with this home.
Cyndi Mino - 714-349-2424
Web Reference: http://www.cyndimino.com
0 votes Thank Flag Link Wed Jul 6, 2011
Hi Dan, an "equity sale" and "standard sale" are the same thing. The other types of sales would be bank-owned or short sales. The sellers will have to disclose anything that they know about that would materially affect the value or desirability of the home. They will also need to provide you with a natural hazard zone disclosure. However, since they've never lived in the home they won't have as much knowledge as someone who had. So it will be even more important for the buyer to obtain a thorough home inspection. If you have any more questions, feel free to contact me.
Web Reference: http://showmehome.com
0 votes Thank Flag Link Wed Jul 6, 2011
Hello Dan. Yes, they are the same. How else can I help you? As your agent I would have in the purchase contract offer, environmental and hazard report, title report, termite report, some disclosures as the investors do really find out alot of information about the house when they remodeled it so a questionnaire about the house, and a buyers inspection report This way you would have the information as to the condition of the house. Talk to you soon. Ingrid Ski
0 votes Thank Flag Link Wed Jul 6, 2011
standard sale and equity sale are the same thing. with so many short sales agents have taken to labeling their listing as standard or equity sales to distinguish them from short sales. Investor properties such as this are "flips" and bought at auction only for resale to the public once they are rehabbed. Since the seller (investor) has never lived in the property and most likely have rolled the property into a single property trust, they are exempted from many of the disclosures that a regular seller would not be exempt from. Like any sale, have the home inspected by a third party professional inspection company of your choosing, ask for termite clearance, and verify that you are comfortable with the neighborhood as you will not have anything from the seller that you can really rely on.
I list properties for just such a group of investors and have sold well over 100 in the last 3 years.
thanks...........Joe
714-799-0937
0 votes Thank Flag Link Wed Jul 6, 2011
Good morning! A standard sale and equity sale are the same thing. It simply means there is equity in the home and it doesn't have to sell "short."

However, in this case, the sellers have never lived in the home so their first-hand knowledge of the property will be very limited. They would likely disclose something to the effect of "sellers have never occupied the property."

You're always advised to obtain a home inspection and natural hazard disclosure (NHD) report regardless of the type of sale.

Do you have a Realtor? If not, I'd be glad to help!
Nicole, (714) 814-5311
0 votes Thank Flag Link Wed Jul 6, 2011
Hi Dan - A standard sale and equity sale are different terms for the same thing. This is meant to distinguish a sale from a short sale.

Basically a standard sale or equity sale is what you would ordinarily think of when someone sells a house. If there is a mortgage on the home, the bank would be paid off, and the seller would keep the reminder of the purchase price as their profit.

I'm not sure what question you are asking with regards to disclosure. The seller should disclose any material defects they are aware of in the property and anything that might effect value as well as any repairs and or improvements of which they are aware. The problem is that in this situation, that knowledge is likely to be very limited.

I recommend that all buyers get a third party inspection done. This is especially important where the seller is unlikely to know the history of the house because they just purchased it at auction and have never lived in it.

If you have any more questions about this, you can reach me at christine(at)donovanblatt(dot)com.
Web Reference: http://www.donovanblatt.com
0 votes Thank Flag Link Wed Jul 6, 2011
Hi Dan,
Standard Sale & Equity Sale are really the same. The property has equity where the owner is going to make a gain. If the "investment group" purchased the property well below market, remodeled it and is selling at the current "market" price (or just above), they are going to make a profit in the sale.

I hope this helps you!

Let me know if I can be of any service to you in your search.

Scott Cramer
B.S., CRS, GRI, SFR, SRES
0 votes Thank Flag Link Wed Jul 6, 2011
Standard Sale and Equity sale are the same.
Theowners are very limited in what they have to disclose because they never lived in the home.
I always suggest to my buyers to get a Natural Hazard Report, Home Inspection and Termite Report.
Regards
Steve
Tarbell, Realtors
714-350-36656
0 votes Thank Flag Link Wed Jul 6, 2011
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